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Question 2. Consider an endogenous growth model with identical dynastic families. The size of the population is normalised to one. Agents in these families have

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Question 2. Consider an endogenous growth model with identical dynastic families. The size of the population is normalised to one. Agents in these families have two periods of lifetime (childhood and adulthood). Children make no decisions. A parent at time t a 0 has one child and derives utility from own consumption .2, and the consumption of all future generations as follows: y = 2210 t at (dynastic utility), where D 0 and human capital h,, this parent has access to a production technology, 3": = Aklthal'\". and to an education technology for the human capital of the child hm, ht+1 = DU " 1:315\" with A > 0, O o. The parent also gives a bequest k\

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